STAR BUSINESS REPORT

Dhaka stocks surged yesterday amid renewed optimism among investors about the economy after US President Donald Trump announced a two-week ceasefire with Iran, subject to the immediate and safe reopening of the Strait of Hormuz.

Oil prices plunged below $100 per barrel, and stocks and bonds surged in global markets yesterday, on hopes for a resumption of oil and gas flows through the Strait of Hormuz, through which one-fifth of the world’s oil and gas and 30 percent of global fertiliser are transported.

Bangladesh’s stocks have gained in line with the global markets. The DSEX, the benchmark index of the key bourse, the Dhaka Stock Exchange (DSE), climbed 161.08 points, or 3.12 percent, to close at 5,317.96.

This marks the highest point for the premier bourse after March 16, when the index finished at 5,353.94.

“Market sentiment shifted from caution to optimism overnight as easing Middle East tensions and falling oil prices ignited a wave of relief and bargain-hunting for beaten-down stocks,” said SM Galibur Rahman, head of research and strategic planning at Shanta Securities.

Market participation saw a boost, with turnover reaching Tk 991.59 crore, representing a 66 percent spike from the previous session, according to the DSE.

“DSEX jumps as ceasefire news boosts market sentiment,” said Shanta Securities Research in its daily market review.

The surge was mirrored across other indices. The DSES, representing shariah-compliant companies, advanced 30.16 points, or 2.88 percent, to 1,075.97. Similarly, the DS30, which tracks blue-chip stocks, also gained.

Of the traded issues, 367 advanced, 15 declined, and 11 remained unchanged.

Shanta Securities Research said market movement was driven by positive changes in the market capitalisation of travel and leisure, banks, and paper and printing scrips amid negative changes in the market capitalisation of debenture, information technology (IT), and service and real estate scrips.

Khan Brothers PP Woven Bag Industries Ltd, Summit Alliance Port “In